Latest news with #H.D.Kumaraswamy
Mint
2 days ago
- Automotive
- Mint
India's EV bait: Who'll bite?
On Monday, India's government notified the guidelines of a policy announced last March to lure foreign investment in electric vehicle (EV) making, with a five-year window of easy market access as its bait. A company or group with at least ₹10,000 crore in global auto revenues and ₹3,000 crore invested in fixed assets can soon apply for the benefits of this scheme. Also read: Elon Musk's Tesla not keen on making in India under EV incentive plan: Minister If an EV-maker pledges to invest ₹4,150 crore in Indian manufacturing facilities within three years, backed by a bank guarantee—and with at least 25% domestic value addition achieved in that span and 50% in two more years—it will annually be allowed to import up to 8,000 four-wheeler EVs worth $35,000 or more (in landed cost) at a tariff of 15% instead of the usual 70%-plus for half a decade. That's long enough for an EV maker to test launch its models and decide what to roll off assembly lines. Also read: E-buses under PM E-drive to be used now for intercity, tourist travel German and Korean carmakers are reportedly keen to apply. But Elon Musk's Tesla, which is gearing up for a soft launch, has not shown interest so far, according to heavy industries minister H.D. Kumaraswamy. This is ironic. The scheme's origin lies at least partly in Musk's complaints of high Indian tariffs. Also read: From red to black: India's top automakers see EV business turning around
The Hindu
2 days ago
- Automotive
- The Hindu
Centre notifies guidelines to boost electric car production
The Centre on Monday (June 2, 2025) notified the guidelines to promote domestic manufacturing of electric cars, offering a concessional import duty of 15% on completely built-up units on a day Union Minister H.D. Kumaraswamy said global EV giant Tesla was not interested in manufacturing cars in India. The detailed guidelines for the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI) comes 15 months after the government first announced its import policy. The notice for inviting applications under the scheme will be notified shortly. 'Tesla... They are more [interested] only to start showrooms. They are not interested to [start] manufacturing in India,' Mr. Kumaraswamy told reporters during the launch of the guidelines. The scheme allows EV manufacturers to import Completely Built-in Units (CBUs) cars with a minimum cost-insurance-freight value of $35,000 at reduced customs duty of 15% for a period of five years from the date of the application approval. The maximum number of electric four wheelers allowed to be imported at the reduced customs duty will be capped at 8,000 units per year. The government scheme allows unutilised annual imports to be carried over into the next year. In a departure from the 2024 version of the policy, the government has also allowed brownfield investments following protests from Indian manufacturers such as Maruti Suzuki India and Tata Motors. (With PTI inputs)
The Hindu
2 days ago
- Automotive
- The Hindu
Centre cuts import duty on electric cars in lieu of local manufacturing
The Centre on Monday (June 2, 2025) notified the guidelines to promote domestic manufacturing of electric cars, offering a concessional import duty of 15% on completely built-up units on a day Union Minister H.D. Kumaraswamy said global EV giant Tesla was not interested in manufacturing cars in India. The detailed guidelines for the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI) comes 15 months after the government first announced its import policy. The notice for inviting applications under the scheme will be notified shortly. 'Tesla... They are more [interested] only to start showrooms. They are not interested to [start] manufacturing in India,' Mr. Kumaraswamy told reporters during the launch of the guidelines. The scheme allows EV manufacturers to import Completely Built-in Units (CBUs) cars with a minimum cost-insurance-freight value of $35,000 at reduced customs duty of 15% for a period of five years from the date of the application approval. The maximum number of electric four wheelers allowed to be imported at the reduced customs duty will be capped at 8,000 units per year. The government scheme allows unutilised annual imports to be carried over into the next year. In a departure from the 2024 version of the policy, the government has also allowed brownfield investments following protests from Indian manufacturers such as Maruti Suzuki India and Tata Motors. (With PTI inputs)
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First Post
2 days ago
- Automotive
- First Post
India tweaks guidelines for Made-in-India electric cars, allows importing vehicles at lower tariff
Heavy Industries Minister H.D. Kumaraswamy called the policy a strategic move to make India a manufacturing base for EVs, stating that the plan provides a strong policy framework to attract both foreign and domestic manufacturers read more India has rolled out a revised incentive program aimed at attracting foreign automakers to set up electric vehicle (EV) manufacturing operations within the country, offering significantly lower import duties in return for firm investment commitments. The Ministry of Heavy Industries on Monday (June 2) notified detailed guidelines for the scheme, which allows global manufacturers to import a limited number of fully built EVs valued at $35,000 or more at a concessional duty rate of 15 per cent. This compares with the existing duty structure of 70 to 110 per cent. STORY CONTINUES BELOW THIS AD In exchange, companies must commit to investing at least Rs 4,150 crore, or approximately $486 million, and begin producing electric passenger vehicles locally within three years of receiving approval. Heavy Industries Minister H.D. Kumaraswamy called the policy a strategic move to make India a manufacturing base for EVs, stating that the plan provides a strong policy framework to attract both foreign and domestic manufacturers seeking long-term presence in the growing Indian EV market, according to a report by Moneycontrol. Investment rules and revenue requirements Approved companies will be permitted to import up to 8,000 vehicles annually at the reduced tariff. Any unused quota may be carried over to subsequent years. The total benefit derived from the lower duties has been capped at Rs 6,484 crore or the actual investment made, whichever is lower. To qualify, applicants must belong to corporate groups with at least Rs 10,000 crore in annual revenue from automotive manufacturing and a minimum of Rs 3,000 crore in fixed assets. A non-refundable application fee of Rs 5 lakh will apply. The ministry said it will accept applications for at least 120 days starting this month, with a final deadline of March 15, 2026, although new windows may be opened at the government's discretion. Companies must meet revenue targets of Rs 5,000 crore in the fourth year after approval and Rs 7,500 crore in the fifth. Failure to meet these benchmarks could result in penalties of up to 3 percent of the shortfall in revenue. Domestic value addition and industry response The program includes mandatory local content targets. Manufacturers will need to achieve 25 percent domestic value addition (DVA) within three years and raise it to 50 per cent by the fifth year. The government believes these thresholds will support its 'Make in India' and 'Aatmanirbhar Bharat' initiatives while allowing firms to introduce advanced EV technologies. 'Through calibrated customs duty concessions and clearly defined DVA milestones, the scheme aims to balance technology infusion with local capability development,' said Kumaraswamy. The government had originally announced the plan in March 2024 but held it back for revisions to attract larger players and impose more stringent eligibility norms. Automakers such as Mercedes-Benz, Hyundai, Kia, Skoda and Volkswagen have expressed interest in entering the Indian market under the revised terms. Kumaraswamy added that Tesla, which has been in discussions with Indian officials for years, is not expected to manufacture cars in the country for now, although it is preparing to start vehicle sales. STORY CONTINUES BELOW THIS AD The new guidelines may ramp up competition for Indian automakers that currently dominate the local EV space. Tata Motors and Mahindra & Mahindra, which together lead the segment, had previously lobbied against a broad cut in import duties to protect their early investments. India's EV penetration remains modest. Just 2.5 per cent of 4.3 million passenger vehicles sold in 2024 were electric, but the government has set a goal of reaching 30 per cent by 2030.
Time of India
2 days ago
- Automotive
- Time of India
Big push for EVs: India opens door to global carmakers with massive tax breaks & investment mandate
New Delhi: The government has notified a scheme to promote the domestic manufacturing of electric passenger cars, mandating a minimum investment of ₹4,150 crore and offering a concessional import duty of 15 per cent for five years on electric four-wheelers priced at or above $35,000. The scheme, titled "Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)", was notified by the Ministry of Heavy Industries ( MHI ) on March 15, 2024. On the same day, the Department of Revenue, Ministry of Finance, issued a separate notification regarding reduced import duties in line with the scheme's provisions. The MHI will shortly issue a notice inviting applications under the scheme. Prospective applicants will be able to submit their applications online. Approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers with a minimum CIF (Cost, Insurance, and Freight) value of $35,000 at a reduced customs duty of 15 per cent for a period of five years from the date of application approval. The number of e-4Ws allowed to be imported at this reduced duty rate will be capped at 8,000 units per year, and any unutilised annual quota may be carried forward. However, the overall customs duty foregone under the scheme will be limited to the lower of two figures—either ₹6,484 crore per applicant or the actual investment committed by the applicant, which must be a minimum of ₹4,150 crore. Union Minister H.D. Kumaraswamy said at a press conference, 'Under the visionary leadership of Hon'ble Prime Minister Shri Narendra Modi, the Ministry of Heavy Industries has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles. This landmark initiative aligns with India's national goals of achieving Net Zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.' He added, 'The scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing. With a minimum investment threshold of ₹4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country. Through calibrated customs duty concessions and clearly defined domestic value addition (DVA) milestones, the scheme strikes a balance between introducing cutting-edge EV technologies and nurturing indigenous capabilities.' 'By mandating domestic value addition targets the scheme will further boost the 'Make in India' and 'Aatmanirbhar Bharat' initiatives, while empowering both global and domestic companies to become active partners in India's green mobility revolution,' he said. Applicants will be required to commence manufacturing operations within three years from the date of application approval. There is no cap on the maximum investment under the scheme. The scheme mandates a minimum domestic value addition (DVA) of 25 per cent within three years and 50 per cent within five years from the date of issuance of the approval letter by the MHI or the Project Monitoring Agency (PMA). The DVA will be assessed using the Standard Operating Procedure issued under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components. Certification of DVA for the eligible products will be conducted by testing agencies approved by the MHI. Applicants will be required to make investments specifically for domestic manufacturing of eligible electric passenger vehicles. If the investment is made in a brownfield project, a clear physical demarcation with existing manufacturing facilities must be ensured. Expenditures on new plant, machinery, equipment, associated utilities, and engineering research and development (ER&D) will be considered for calculating investment. Land costs will not be included, but buildings for the main plant and utilities will be eligible provided they do not exceed 10 per cent of the committed investment. Investments in charging infrastructure will be considered up to a limit of 5 per cent of the committed investment. To secure compliance with the scheme's conditions, the applicant will be required to furnish a bank guarantee from a scheduled commercial bank in India. The guarantee must be equal to the higher of the total duty to be foregone or ₹4,150 crore and must remain valid throughout the scheme period. The application window will remain open for a minimum of 120 days and can be reopened by the MHI as required, until March 15, 2026. A non-refundable application fee of ₹5,00,000 will be charged. To qualify under the scheme, applicants must meet the following eligibility criteria: global revenue from automotive manufacturing of at least ₹10,000 crore and a global investment in fixed assets (gross block) of at least ₹3,000 crore based on the latest audited annual financial statements. The scheme is intended to attract global electric vehicle manufacturers, position India as a major EV production hub, and contribute to employment generation while supporting the national goals of sustainable mobility and reduced environmental impact.
